BUENOS AIRES, Argentina, Sept. 8 /PRNewswire-FirstCall/ -- Cresud S.A.C.I.F. y A. (Nasdaq: CRESY; BASE: CRES), today announced results for Fiscal Year Ended June 30, 2009
HIGHLIGHTS
-- As from October 1, 2008, Cresud presents its results in consolidated
form with those of IRSA Inversiones y Representaciones S.A., in which we
held a 55.64% interest as of June 30, 2009. IRSA's revenue and cost
line items correspond to the nine-month period between October 1, 2008
and June 30, 2009. IRSA's prior results are recorded under the
item Gain from related companies
-- Net income increased from Ps.22.9 million in fiscal year 2008 to
Ps.124.6 million in fiscal 2009. This performance is attributable to the
impact of IRSA's results on Cresud's balance sheet and to the
consolidated gain from the acquisition and holding in the portfolio of
Cresud and its subsidiaries of US$ 102.7 million in nominal value of
Notes issued by IRSA and Alto Palermo in 2007. These factors have more
than compensated the adverse effects of the global crisis and extreme
weather conditions for agriculture prevailing in Argentina on
Cresud's agriculture and livestock business.
-- The operating income of Ps.215.4 million comprises a Ps.277.4 million
gain from the consolidation of IRSA's segments, and a Ps.62.0
million loss from Cresud's agriculture and livestock segments in
fiscal year 2009 compared to a Ps.43.6 million gain in the previous
year. This is due to adverse weather conditions that lead to lower
yields and margins in agricultural products together with the drop in
prices resulting from the slowdown in world economy during this year. In
addition, there was a decrease in the sales of farms compared to the
previous year, reflecting a reduction of Ps.21.1 million in revenues in
our income statement
-- We continued with the development of our Los Pozos farm in Salta, where
we have increased our land for livestock production from 33,000 hectares
in fiscal year 2008 to 43,000 hectares in fiscal 2009. Hosting 55,000
heads of cattle, Los Pozos represents a unique livestock production farm
in terms of size and efficiency. During this year, the surface area
devoted to crops at Los Pozos increased from 1,500 hectares to 4,400
hectares.
-- BrasilAgro: during this year, our interest in BrasilAgro rose to 19.14%;
this company in expansion increased its sown surface area by 52%, to
33,504 hectares of its total portfolio of 165,373 hectares distributed
among 8 farms. BrasilAgro's substantial liquidity of R$ 264.4
million enables it to take any new opportunities that may arise in terms
of development of own hectares or acquisitions in the Brazilian
agricultural sector. For this purpose, it has surveyed over 2.5 million
hectares.
-- Regional expansion: We have purchased 12,166 hectares in Bolivia for
agricultural production. These hectares are in production and allow
double harvesting during the year. In the case of Paraguay, we have
launched an agricultural, livestock and forestry project through a
company that owns 41,931 hectares and a purchase option for another
100,000 hectares. This project will be developed in several stages, and
we believe that it has a high potential for land development and
appreciation.
-- During fiscal year 2009, we implemented a repurchase plan for 30 million
shares as a result of the evident distortion in the price of
Cresud's share compared to the quality of its assets. The result of
this decision has been successful, as we have repurchased 5.98% of
outstanding capital stock at an average price of US$ 7.18 per ADR.
-- Regarding the operations of our controlled company IRSA, operating
losses were reduced in the consumer finance segment compared to those
recorded for the first quarters of the fiscal year. The other segments
still present good cash flow generation and results. During this year,
IRSA has incorporated to its portfolio, through its subsidiary Alto
Palermo, its 11th shopping center, the largest in the city of Buenos
Aires. It has also completed construction and made available for rental
a new office building, and has sold non-strategic office properties for
lease at prices that reflect the value appreciation potential of its
commercial real estate portfolio.
Financial Highlights
(In Thousands of Argentine Pesos)
Fiscal Year ended
June 30, 2009
Income Statement As of June 30, 2009 As of June 30, 2008
Production Revenues 172,512 159,821
Gross Profit from Agribusiness (3,374) 85,670
Real Estate Segments Sales 1,015,280 -
Gross Profit from Real Estate 579,357 -
Gross Profit 575,983 85,670
Operating Profit 215,403 43,612
Net Income 124,616 22,948
Balance Sheet As of June 30, 2009 As of June 30, 2008
Current Assets 1,157,655 736,865
Non Current Assets 4,818,401 1,332,895
Total Assets 5,976,056 2,069,760
Current Liabilities 1,313,912 262,348
Non Current Liabilities 1,413,278 43,914
Total Liabilities 2,727,190 306,262
Minority Interest 1,435,982 1,160
Shareholders' Equity 1,812,884 1,762,338
About Cresud:
Cresud is a leading Argentine agricultural company with a growing presence in the Brazilian agricultural sector through its investment in BrasilAgro-Companhia Brasileira de Propriedades Agricola. Cresud is currently involved in a range of activities including crop production, cattle raising and milk production. Cresud's business model, which it seeks to roll out abroad, taking into account the specific conditions of each country, focuses on the acquisition, development and exploitation of properties having attractive prospects for agricultural production and/or value appreciation and the selective disposition of such properties where appreciation has been realized.
A longer version of this press release with detailed information is available on the web site: http://www.cresud.com.ar.
Cresud cordially invites you to participate in its Fiscal Year 2009 Results Conference Call on Monday, September 14, 2009, at 11:00 am Eastern Time
If you would like to participate, please call:
United States: 800-314-6696
International: +1-706-758-8485
To access the webcast, click on the link below:
http://www.videonewswire.com/event.asp?id=61954
SOURCE Cresud S.A.C.I.F y A.
For further information: Gabriel Blasi, CFO, +5411-4323-7449, gblasi@cresud.com.ar
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